At the start of the credit crisis in 2008, the Deposit Insurance Fund contained $45 billion, but it has been rapidly depleted. FDIC recently increased bank premiums to make up for the shortfall, and can draw on a  $500 billion line of credit from the US Treasury, if necessary, as it did in 1991 to protect depositors in the aftermath of the S&L crisis.

When a bank or savings and loan is ordered closed by government regulators, the FDIC is appointed Receiver - the rough equivalent of a bankruptcy trustee - with responsibility for the payout of insured deposits up to $250,000 * per qualified account; and liquidation of the institution's assets, which are distributed to creditors.

After a bank is closed, the FDIC provides written notice within 30 days to insured depositors advising they must claim their deposit from the FDIC, or if the deposit has been transferred to another institution, from that institution. A second notice is mailed 15 months after the first.

► Be advised, however, that not every depositor with funds in a failed bank will receive notification from the FDIC.

Beneficial owners of fiduciary accounts, including Uniform Transfers To Minors (UTMA) accounts, escrow accounts, Interest on Lawyer Trust Accounts (IOLTA), and deposit accounts obtained through a broker (Brokered Accounts) will not be contacted by the FDIC.

This is because these accounts are on the failed bank's records in the name of the fiduciary, not the individual owner. The FDIC does not have access to ownership information, and therefore will not contact individual depositors. It is the responsibility of the broker or other fiduciary to initiate a claim.

► There are negative consequences for those who fail to promptly claim insured funds. *

Accounts transferred to successor institutions may have lower interest rates and can lose insurance coverage, after a period of time, generally six months. If an individual already has accounts at a successor institution, perhaps unknowingly in the case of brokered deposits, the insurance limit may be exceeded and funds could be lost in a subsequent receivership. In a worst case scenario, claims on accounts which are inactive for an extended period may be time barred, and safe deposit boxes can be drilled and the contents sold at auction.

It is important to understand you may have an account at a failed institution and not know it, either because you were a depositor at a bank acquired by an institution that subsequently failed, or if you are the beneficial owner of a brokered or trust account.

◄ For specific claims information and a list of other banking institutions that a failed bank has acquired over the years, select a bank closure from the list or go to: Bank Search

► Different rules apply to failed Credit Unions

The National Credit Union Administration (NCUA) supervises and insures over 7,329 federal credit unions and 4,538 state-chartered credit unions.

When a federally-insured credit union is liquidated, NCUA's Asset Liquidation Management Center - not the FDIC - assumes responsibility for paying share accounts to members. NCUSIF, The National Credit Union Share Insurance Fund, currently insures member deposits up to a $250,000 ** limit.

Since 1990, more than $331 million has been paid out to well over 100,000 shareholders. In 2011, fifteen credit unions were liquidated, purchased or assumed with NCUA assistance; down from nineteen in 2010 and fifteen in 2009.

There are time limits on claims. Accounts claimed within an 18-month insurance period are paid the full insured amount. After the 18-month insurance period, unclaimed shares are considered uninsured and are written down to subsidize any losses incurred.

Oakland Municipal Credit Union California
Family First Federal Credit Union  Utah
NYC OTB Federal Credit Union  New York
Wisconsin Heights Credit Union  Wisconsin
Land of Enchantment Federal Credit Union New Mexico
Mission San Francisco Federal Credit Union  California
Utah Central Federal Credit Union Utah
Hmong American Federal Credit Union Minnesota
Valued Members Federal Credit Union Mississippi
St. James A.M.E. Federal Credit Union New Jersey
Borinquen Federal Credit Union Pennsylvania
Vensure Federal Credit Union Arizona
BCT Federal Credit Union New York
O.U.R. Federal Credit Union Oregon
 

2010 credit union closures

2009 credit union closures

► For assistance finding and claiming a lost or dormant credit union CD, IRA, safe deposit box, savings or checking account go to Credit Union Account Search

** The Emergency Economic Stabilization Act of 2008 temporarily increased FDIC and NCUA deposit insurance to $250,000 from October 3, 2008, through December 31, 2009; but the change has now been made permanent and retroactive by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

The $250,000 deposit insurance limit now applies to banks that failed between January 1 and October 3, 2008. Former depositors at the following failed banks, therefore, may be entitled to receive additional compensation:

• Washington Mutual Bank (WaMu)
• Hume Bank, Hume, MO
• ANB Financial, N.A., Bentonville, AR
• IndyMac Bank, F.S.B., Pasadena, CA
• First Priority Bank, Bradenton, FL
• The Columbian Bank and Trust Company, Topeka, KS
• Silver State Bank, Henderson, NV

* Time limits on claims of FDIC-insured bank accounts, CDs and safe deposit boxes

Be advised that not every depositor with funds in a failed bank will receive notification from the FDIC, and there are time limits on claims of FDIC-insured bank accounts, CDs and safe deposit boxes.

Beneficial owners of fiduciary accounts, including Uniform Transfers To Minors accounts, escrow accounts, Interest on Lawyer Trust Accounts (IOLTA), and deposit accounts obtained through a broker (Brokered Accounts) will not be contacted by the FDIC.

This is because these accounts are on the failed bank's records in the name of the fiduciary, not the individual owner. The FDIC does not have access to ownership information, and therefore will not contact individual depositors. It is the responsibility of the broker or other fiduciary to initiate a claim.

In addition, accounts transferred to successor institutions may have lower interest rates and can lose insurance coverage, after a period of time. If an individual already has accounts at a successor institution, perhaps unknowingly in the case of brokered deposits, the insurance limit may be exceeded and funds could be lost in a subsequent receivership.

Finally, in the worst case scenario, by law accounts which go unclaimed for an extended period may be time barred, and safe deposit boxes can be drilled and the contents sold at auction.

It is important to understand you may have an account at a failed institution and not know it, either because you were a depositor at a bank acquired by an institution that subsequently failed, or if you or a deceased family member are the beneficial owner of a brokered fiduciary account.